CREATING STRATEGIC PARTNERSHIPS TO AID LELCHEGO DAIRY CO-OPERATIVE SOCIETY EXPAND ITS FINANCIAL POTENTIAL.
The County Government of Nandi through the Department of Agriculture and Co-operative development is working to strengthen strategic relationships between cooperative societies and key stakeholders. As a liaison body, the cooperative development directorate aims to expand the productivity and profitability of farmer cooperative societies through key stakeholder engagements and partnerships.
It is on this mandate that on Thursday the department of cooperative organized and oversaw a business to a business meeting between Lelchego dairy cooperative society, Cooperative Alliance of Kenya, and Agricultural Finance Corporation.
The meeting saw the two stakeholders agreeing to support the progress of Lelchego’s financial potential in their different areas of expertise and capacity.
The Cooperative Alliance of Kenya was represented by its business and financial advisory. The team is to create a customized business plan for dairy society. The business plan will encompass a well-articulated strategic structure that will keep Lelchego on the top charts of potential financiers and investors while they seek financial support for their projects.
CAK consultant Ursula Gesembe stated that the business plan is the only effective path to seeking financial support and attracting serious investors. She gave examples of cooperatives that have worked with them and are now realizing huge profits from taking this step as the first means.
“Murugu and Kinangop Saccos started small and in their determination to scale up consulted with us for their customized business plan. Now the two are collecting milk from all over the region and have secured high return investor partnerships with reputable organizations. Murugu has recently been able to secure two extra coolers with no extra cost from their pockets because of the convincing power of their business plans.”
She was optimistic that Lelchego is on the same promising path owing to the fact that it is located in a milk invested area compared to the other two mentioned. She, therefore, praised the management for agreeing to the partnership and promised that the consultancy will deliver on the business plan.
The business plan structure will be tailored around the society’s financials, future project plans, project reports, the capacity of production, society profile, organizational structure, audited accounts, and strategic plans.
CAK consultancy also offers support in areas of formulation of co-operative policies, standard operation procedures, human resource consultancy, and training.
Agricultural Finance Corporation Manager, Dorcas Sang on the other hand spoke on the role of AFC in assisting the development of agriculture and agriculture industries by making loans to individuals and groups engaging in agricultural activities.
She highlighted the stability and flexibility of acquiring AFC loans as it is specifically created to meet the nature of the value chain.
“The advantage of financing with AFC is that the facilities they offer do not limit your borrowing capacity. It also finances along the value chain and we work within the scope of the organization memorandum.”
Also present was Kipchumba, a financial advisor from Cooperative bank who briefed on financial packages the cooperative is fit and eligible to acquire and ones that are more cost-efficient and effective.